Editorial Jan 2017 Vol 17 No.17
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Introduction of Unique Identification Global Number bearing Card
- A request to the Global leaders.
After the Surgery of Demonitization, What next?
- A request to the Hon. Prime Minister of India, Sri. Narendra Modiji.
by Prof. Sekhara Gowd Mitta, Prof. Earanna. S & Prof. Suresha K.V.,
H.E Hon. Members & Leaders of World Groups WTO, WHO, UN, NATO, BRICS, Nuclear Security Summit,G7, G8, G20, BRICS, SAARC, ASEAN, IBSA, APEC, OPAC, CHOGM, BIMSTEC, NAM, EU, AU, World Bank and International Monetary Fund etc.,
H.E Presidents and Prime Ministers of the world, Wise, Rich & Business men of the world,
H.E Roberto Azevedo, Director-General, WTO.
H.E Dr. Margaret Chan, Director-General,WHO.
H.E Mr. Sam Kahamba Kutesa, The President of the United Nations General Assembly.
H.E Sri Narendra Modiji, Prime Minister of India.
H.E Sri Donald Trump, President, USA.
H.E Vladimir Putin, President, Russia,
H.E Li Keqiang, Prime Minister of China,
H.E Angela Merkel, Chancellor, Germany,
H.E David Cameron, Prime Minister of United Kingdom,
H.E Manuel Valls, Prime Minister of France,
H.E Hwang Kyo-ahn, Prime Minister of South Korea,
H.E Matteo Renzi, Prime Minister of Italy,
H.E Mr. Shinzo Abe, Prime Minister of Japan,
H.E Ahmet Davutoğlu, Prime Minister of Turkey,
H.E Najib Razak, Prime Minister of Malaysia,
H.E Prime Minister Lee Hsien Loong, Singapore,
H.E Khadga Prasad Sharma Oli, Prime Minister of Nepal,
H.E Malcolm Turnbull, Prime Minister of Australia,
H.E Justin Trudeau , Prime Minister of Canada.
(At the end the List of world leaders added)
Sub: 1. Introduction of Unique Identification Global Number bearing Card- A request to the Global leaders.
The Black Money/ Hidden/ Crony Capitalism is the crux of the problem of every country. Hoarding of such a black money is akin to cheating the mother country- whichever country it may be. If the hoarders of black money are investing in other countries lavishly other than their mother land; then the first question to the receivers of the other countries is “When the person is cheating his own country, how do you trust such a person who is not trustworthy?”. A country may come out with the policy measures of its own to contain the menace of Black money. However, its impact is not long lasting unless the other countries at global level positively reciprocate to it through proper policy measures. The countries at large should not provide platform in for parking of such ill gotten money. The menace of black money may not be affecting to the circulation of legal tender at global level. Eventually the question of Black money that may drive away good money does not arise. The positive impact of such policy measures at Global level will prove fruitful contributing to Global exchequer.
In this regard the developed countries should take lead and form a global platform annexed to the global bodies like WTO. The following steps are needed towards reforms.
1. The Global leaders are expected to meet under the umbrella of WTO and should discuss about Unique Identification Global Number bearing card. (UIGN)
2. Identification of pros and cons of UIGN card.
3. Establishing the Vision and the Mission of this global project.
4. Persuading all the member countries of WTO to fall in line to contain the global menace of Black Money in the unison.
5. Garner the resources needed for the implementation of global agenda.
6. Creation of a new policy related to UIGN with the foolproof Technology.
Hence, it is high time to adapt to changed global scenario. In this regard, we, on behalf of acme intellects request earnestly the world leaders to eradicate the universal menace of black money through proper global enactments. The requisite technology to create global alertness wherever the investments are made- irrespective of the type and quantum of the money being transacted even at the remotest corner of the globe. The inter national money transaction should be linked to UIGN for global transparency.
2. After the Surgery of Demonetization, What next? - A request to the Hon. Prime Minister of India, Sri. Narendra Modiji.
Pros and Cons of Demonetization- An analysis and future
A strong appeal towards the success of the vision of Demonetization
Surgery though it is a last resort needed to scissor-out Cancerous and other malignant wounds to sustain the economy.- Sri Modi’s Visionary Surgery at this juncture is inevitable to insulate the economy in the interest of common people.
Demonitization- A Process of untruth to truth.
As proud citizenry of India, on behalf of members of Acme Intellects Editorial board, readers and scholars heartily congratulate your Excellency for your herculean efforts of meticulous implementation of Demonetization and perennial fight to eradicate the menace of black money and corruption in your visionary dream of “Achhe Din” success. At this moment of time we may fail in our duty if we do not remember the most revered dicta-Gresham’s law “Bad money drives out good from circulation”.
The term demonetization is not new to the Indian economy. The highest denomination notes were demonetized in 1946 and in 1978. The then demonetization of highest denomination notes by erstwhile Governments did not impact common people because these were hoarded by a finger counting wealthy people. The currency notes of the Denominations of Rs. 1000 and Rs. 500 were demonetized on November 8, 2016 and introduced the new redesigned series denominations of Rs. 2000 and Rs. 500 were introduced. The decision of demonetization was taken to curb the black money, corrupt practices, counterfeits and Terror financing threats. However, with the most recent round of demonetization, the common public and bankers are undoubtedly affected- may be for short period. Demonetization is hampering the current economy because it affects temporarily marginal efficiency of capital. However the fiscal measures initiated by the Government and the RBI may negate such impacts and proves fruitful in the long run.
The pros and cons of Demonetization are summed up as under.
1) Black Money: The Process of Demonetization and its effective implementation affects drastically the genesis of black money and rampant corrupt practices found in vogue. The holders of heap of black money were unable to get exchanged their ill-gotten money with legal tender currency notes because of time constraints, withdrawal limits and the stringent operations and constant watch of IT and enforcement department authorities. The effective implementation was diluted because of the connivance of select bankers and corrupt practitioners. This affected temporarily common citizenry to stand in long queue for the conversion of their meager holdings.
2) Counterfeit currency: The large scale pumping in of counterfeit currency devalued the real worth of Indian currency and created ugly parallel economy. The stroke of Demonetization gave a death blow to the counterfeit Indian currency syndicate operating both inside and outside the country. Most of the FICN are printed outside India and circulated to weaken the economy at large. The demonetization zeroed their inimical attitude of cancerous neighbors.
3) Terror funding, Maoism, Naxalism, Hawala: Fake Indian Currency Notes (FICN) network dismantled by this process of demonetization affecting the funding of terror networks in Jammu and Kashmir, North-eastern states and Naxalite hit states infested. Funding for arms, smuggling, espionage and terrorist related activities clogged due to lack of funding. Demonetisation has crippled the hawala rackets. Maoists raise money through donations, levy and extortions temporarily stopped.
4) Cleaning electoral process: The process of demonetization cleansed the electoral process by curbing the large scale inflow of black money and its use. The reduced cash flow choked the malpractices like distribution of cash, drugs, liquors to trap gullible voters. It also affected the Industrial Nepotism through curbing crony capital.
5) Halt to escalation of prices in the Real estate sector :Black money was responsible for souring prices of properties in metropolitan and cosmopolitan cities due to significant cash component. Demonetization constituted as an instrument in arresting sky racketing prices, bringing more transparency and exercising restraints on benami dealings. In future the sector may attract genuine domestic and foreign investors.
6) Economy: Demonetization has curbed hoarding of mountainous unaccounted money, public at large have pressurized through enforcement to account their money indirectly depositing with the banks. This has resulted in alarming rise of available money with the banks beyond prudent expectation of the RBI, significant decline in NPA’s of banks and strong secured banking system. In turn the banks, as per the guidelines of RBI and Government policies lends to various sectors at thrown away rate of interests. An ultimate impact is all round revival in otherwise sluggish recovery of aggregate economy, rise in GDP, revive in investment opportunities, increase in employment, streamlining of Tax system, etc..
Negation of Parallel Economy- Consequent to Demonetization Black money, hawala transactions etc were brought to grinding halt and in the near future parallel economy will be negated.
7) Digital Revolution: Moving towards digital payments
Less Cash Economy-The process of Demonetization may constitute as a game changer for India in the days to come through behavioral shift from conventional system to digi system. This leads to absolute transparency in all transactions irrespective their nature and type. In the long run too much physical handling of cash may disappear due to change in habits. This digi revolution may witness shift from informal to formal and unorganized to organize sectoral movement, ensuring the minimum wage payment to hithered to unorganized low paid workers like daily wage earner, maid servants, labourers.
Suggestive strategies recommended to Sri Modiji:
- Use of Ill-gotten money Deposited: Now it is high time to use the huge amount deposited in the banks for the cause of socio equal developmental needs. In the process, again the Banks should not undergo with the corrupt practices and delay in sanctioning. Banks have to circulate the money properly under proper schemes to raise the GDP under the supervision of RBI-Sentinel.
- Proper Technology against Counterfeit currency: There is a need of proper technology to prevent counterfeiting of legal tender. In addition to this the technology must enable to find the currency automatically like mining & forestry; if the more currency is accumulated at one place. The technology should send the message when the currency increased to certain extent other than permitted places like Banks, RBI etc.,
- Digitization is Good only when Systems for its implementation is equally equipped on apar withit:
The Proper Digitization systems should be brought into force through appropriate technology. It should be people friendly, easy to adopt and economical. Hence, People at large should be educated to make use lucid digital mode in their day to day life.
Digitization indirectly controls the quick deals of Terror funding, Maoism, Naxalism, Hawala, Illicit sale of liquor, drugs, flush trade, human trafficking, corruption.
Implementation of Payment of Minimum Wage Policy: There is a yawning gap between payment of minimum wages act and its implementation. Therefore it is necessary to implement the provision of acts by words to reach underpaid workers. Digitization constitutes as a solace to this problem.
Change in Real Estate Policies: There should be single value assessment of properties. Presently there is an alarming difference between the Government value of land / site with Market value. There should be single value assessment that too Government registration should be done on the basis of that only. There should not be any question of under value or over value for that moment.
The Government should strongly revise the stamp duty by reducing its tariff rates to encourage transparency in land dealings. In the long run it may change the mindset of the people.
Money to the Needy: Rich people will make/ create/arrange all the required documents for availing loans in collusion with bankers or financial institutions, where as it is not so in case of poor and middle class people. Hence, this deposited money thru jan dhan yojana or any other savings which came into the bank in large scale should be canalized properly to the needy- Down trodden, rural populace, small and marginal entrepreneurs, at the affordable cost thru appropriate policy measures.
Stringent Action on Hawala Practices – People who are habituated to amass wealth in large scale are growing like cancerous cells. Even they are not prepared to change their deep rooted mind sets because of toothless enforcing machinery. Therefore it is high time to provide teething power to enforcing machineries through proper enactments.
Check over outflow of money abroad: People who are scared of their hard earned money have started investing outside India. It is high time to convince such people through policy measures to invest that money in India only.
Strict and Insulated Cyber laws: There is a dire need for promulgation of draconian cyber laws to safeguard the gullible citizens.
Hence, Modiji! Your Excellency has got a band of high ranking intellectuals to support your cause and concern to the societal needs. However, to implement the scholastic ideas political will is needed. Therefore it is high time to come out with the strategies best suited to our society. May we expect your Excellency to think beyond the box of politics?
With warm regards,
Prof. Earanna. S,
Associate Professor, B.R.B College of Commerce, Raichur, Karnataka State, India.
Prof. Suresha K.V.,
Associate Professor & Principal, JSS College for Women, Saraswathipuram, Mysore, Karnataka State, India. &
Prof. Sekhara Gowd Mitta,
Founder & Managing Editor, AIIJRMSST, Tumkur, Karnataka State, India.
& Assistant Professor, Dept of MBA (PGDMS), Kalpataru Institute of Technology, Tiptur, Karnataka State, India.
& Acme Intellects Group
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Turkmenistan : Capital - Ashgabat; President - Gurbanguly Berdimuhamedow
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Ukraine : Capital - Kiev; President - Petro Poroshenko; Prime Minister - Volodymyr Groysman
United Arab Emirates : Capital - Abu Dhabi; President - Khalifa Bin Zayid Al Nuhayyan; Prime Minister - Muhammad Bin Rashid Al Maktum
United States of America : Capital - Washington, D.C., President - Donald Trump
United Kingdom : Capital - London; Queen-Elizabeth II; Prime Minister - Theresa May
Uruguay : Capital - Montevideo; President - Tabaré Vázquez
Uzbekistan : Capital - Tashkent; President - Shavkat Mirziyoyev; Prime Minister - Abdulla Oripov
Vanuatu : Capital - Port Vila; President - Baldwin Lonsdale; Prime Minister - Charlot Salwai
Venezuela : Capital - Caracas; President - Nicolas Maduro Moros
Vietnam : Capital - Hanoi; President - Tran Dai Quang; Prime Minister - Nguyen Xuan Phuc
Yemen : Capital - Sana'a; President - Fd. Mar. Abd Rabuh Mansur Hadi; Prime Minister - Ahmed Obeid bin Daghr
Zambia : Capital - Lusaka; President - Edgar Lungu
Zimbabwe : Capital - Harare; President - Robert Gabriel Mugabe